partnerships and - lasa national · 2018-02-11 · corporate governance corporate strategy...
TRANSCRIPT
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Partnerships and
Collaboration…The Benetas and
Macedon Ranges Health Journey
Chris Karagiannis, GM Strategy Infrastructure and Housing, Benetas
Don Tidbury, CEO, Macedon Ranges Health
About Benetas
“I wish I could lay hands on
£100,000 for the provision of… all
the things old people need when
years and loneliness overtake them.
I wonder whether anyone who reads
this note… will help to start us on
the way to fulfil this next duty,
which I believe to be the most
urgent?”
Archbishop Joseph John Booth,
Founder of Benetas, 1946
“Seeking out and serving
disadvantaged and
marginalised elderly
people in the community”
Benetas Constitution
Heritage & history
Motivated by and together with the Archbishop, in 1948 a group of Anglican volunteers
responded to the urgent need to provide care and support to older Victorians, and
Benetas was born.
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Our services
We offer a range of
services across metro
Melbourne and regional
Victoria (including
Mornington Peninsula,
Bendigo and Latrobe
Valley) which allow older
people to live in good
company, either in their
own homes or in a
Benetas home.
Home Careservices
In-home nursing services (for people of all ages)
Retirementliving
Customer Centre
Residentialservices
Research, Innovation& Advocacy
Centre for CulturalDiversity
Respite services
About Benetas
About Macedon Ranges Health
Heritage & history
MRH has been serving the community for
60 years, having originally commenced as
a bush nursing hospital in 1958.
Our Mission is to be recognised and
respected as a valued regional provider of
high quality integrated primary care and
aged care services.
As an independent, not-for-profit,
community owned organisation, MRH
enjoys a strong reputation & a high level
of engagement with the local community.
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About Macedon Ranges HealthOur services
MRH provides an extensive
range of public and private
services to enable better
health and well being
outcomes for people of all
ages.
Supported by nearly 400
employees and volunteers,
MRH provides support to
people living in the Macedon
Ranges and beyond, a
catchment of over 46,000
people
Primary Care
Mental Health & Support Services
Residential Aged Care
National Disability Insurance Scheme
Home Care
Youth & Adolescent Services
Independent Living Units
District Nursing
Men’s Shed, Op Shop, Market & Volunteers programs
About Macedon Ranges Health
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Strategic Driver Strategic Implication
Government regulationGovernment policy is moving aged care services toward a more competitive consumer-driven market with the
expansion of home care supply. Fiscally constrained government funding will need to be supplemented by
increasing user pay contributions.
Increasing consumer expectations Higher income and wealth of ageing baby-boomers and increasing user pay contributions
are increasing consumer expectations, in particular for more choice and control over aged care options.
Growing and changing care needsFavourable demographic trends will ensure continuing strong demand for aged care services. Lower mortality/
higher morbidity increases diversity in care needs with increasing chronic diseases and more complex care needs
such as dementia, palliative care, etc.
Increasing competitionOpening up of aged care markets will see new entrants attracted to the high growth industry, significantly
increasing competition and new substitutes to challenge traditional business models. Industry consolidation
will result in larger more commercially market-driven service providers.
Workforce shortagesIncreasing demand for services increases the need for aged care workers. The competition for highly skilled clinical
and management staff and quality personal care workers will be strong. Recruitment and retention initiatives and
effective use of technology to increase efficiency and improve quality, will be increasinglyimportant.
Access to capitalAs opportunities for government funded capital continue to reduce, organisations must consider other innovative
opportunities to raise capital to support the redevelopment and expansion of facilities
Strategic Industry Drivers for Both Organisations
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Where we started
February 2018
MACEDON RANGES HEALTH
• MRH Board Vision –‘to establish a best practice aged care community’
• Insufficient capital
• Lack of internal resources, excessive spend on consultants
• Changing care landscape, increased competition, reduced viability of small providers
BENETAS
• Deliver on Vision & Mission
• Aligns with strategy
• Sustainable business
• Market attractiveness
• Quality Facilities
• Fully integrated service model in Macedon
• Brownfield development opportunity
• Creates value & spreads support office costs
MRH Objectives
Deliver on mission to be recognised and
respected as valued regional provider of high
quality, integrated primary and aged care
services
Meet the needs and expectations of the growing
aged population
Retain strong reputation and engagement with
the local community
Ensure the long term delivery of not
for profit care services
Maximise the full potential of its land,
buildings and infrastructure
Aligned Strategic Intent
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“An alignment of vision, not for profit missions
and service provision by each organisation.”
Benetas Objectives
Deliver on mission to provide older Victorians, their
families and carers with a full range
of quality community based servicesand
residential facilities
Modernise and grow our portfolio of residential care
and retirement living services
Leverage organisational capabilities and systems which
support improved customer focus, service quality and
financial performance
Seek out collaboration partners to expand the range
of services into new communities
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Industry Search for a Partner
February 2018
Why Benetas?
• Excellent reputation & industry leader in the provision of aged care
• Not for profit mission and strong support to those most vulnerable in the community
• Commitment to grow and enhance MRH’s primary care services
• Financial capacity to achieve the Board’s vision to establish a best practice, integrated health & aged community
• Demonstrated track record of investing in
regional communities
Why MRH?
• Opportunity to enter the attractive Gisborne and Macedon Ranges Region
• Attractive and strong aged population growth profile
• Well regarded and respected provider with a
strong brand
• Attractive operating assets with opportunities for further development and growth
• Opportunity to enter primary and allied health services industry and expand these services into other regions
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The Opportunity to realise a Shared Vision
• Deliver an integrated community for older people on the
currentMRH site
• Redevelop and expand the residential aged care
services to 120+ beds
• Establish a retirement village offering a range of
premium to affordable unit options
• Expand Home Care/Allied Health services into other
markets
• Significant investment into the local Gisborne
community and create new employment opportunities
(estimate $60M+)
• Commitment to retain local Macedon Ranges
Health brand
• Commitment to retain and expand the primary and
home care services currently offered.
• MRH Management to transfer across to Benetas
• Establishment of a Community Advisory Committee to
provide guidance on local health & aged care priorities
Collaboration Options
How does each Collaboration Option align to strategic intent?
Benetas Objectives Acquisition Ground Lease Amalgamation
Deliver on mission to provide older Victorians, their families and carers
with a full range of quality community based services and residential facilities
Modernise and grow our portfolio of residential care and retirement living services
Leverage organisational capabilities and systems which support
improved customer focus, service quality and financial performance
Seek out collaboration partners to expand the range of services into new communities
MRH Objectives Acquisition Ground Lease Amalgamation
Deliver on mission to be recognised and respected as valued regional provider
of high quality, integrated primary and aged care services
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Retain strong reputation and engagement with the local community2
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Ensure a viable, sustainable and profitable organisation
Maximise the full potential of land, buildings and infrastructure
1Not integrated 2 Potential loss of identity 3 Smaller scale
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Corporate Governance
Corporate Strategy Oversight
Business Case
Validation & Approvals
• Key role particularly during the DD &
community engagement phases.
• Balance commercial outcomes with mission
and vision.
• Continue the focus on building social capital
through the M&A process.
• Oversight of ‘opportunities’ to corporate
governance & strategy.
• Ensure resources (human &financial)
are available to execute the strategy.
• Ensure history and identity is defined and
maintained.
Role of the BoardRole of the Board
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• ‘Expert Advisory’ critical to success.
• Governance Framework which ensures
consistency.
• Gateway Process with Holdpoints
• Three categories; Commercial,
Financial, Regulatory
• Board Engagement Strategy mirrors
gateways.
Due Diligence
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Gateway 1 Strategic Fit
Gateway 2 Preliminary Due Diligence
Gateway 3 Detailed Due Diligence
Gateway Approach
Due Diligence
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Gateway 4 Board Approval
Gateway 5 Pre Implementation
Gateway 6 Implementation Day
Gateway Approach
Gateway 7Post Implementation Review
Due Diligence
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A structured, two year “whole of
community” engagement process
• The Board
• Members
• Employees
• Volunteers
• Residents & Clients
• Community Influencers &
Opinion Leaders
• Local Media
• Government
Stakeholder engagement process
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• The seeds were planted via AGM’s and
Annual Reports in the preceding years
• Process led by the Board & CEO
• Stakeholder engagement workshops &
meetings in May and October 2017
• Regular communication & media
updates
• Structured formal & informal Member
advocacy processes
• Community Groups: Probus, Rotary,
The Men’s Shed, GP’s etc.
Stakeholder engagement process
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• Macedon Ranges Health (MRH) Members
attended a Special General Meeting on
the 14th November to vote on the
amalgamation
• Representatives from MRH and Benetas
along with other community leaders
presented a final case for the
amalgamation.
• The amalgamation received
overwhelming support with 83% of
members voting in favour of it.
Member Vote
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• Completion of Conditions Precedent
• Benetas and MRH are liaising with
government to facilitate the necessary
funding, crown land and committee of
management transfers
• Finalisation of the “Amalgamation Deed”
• Removal of land covenants
Where to now?
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• Representatives from both organisations
have formed a “Joint Working Group” to
oversee the amalgamation
• MRH’s 60th Birthday celebrations
• Low hanging fruit e.g. IT systems
• Employee Engagement Program continues
• Goal date for amalgamation: 1st July 2018
Where to now?
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• Have a corporate strategy that supports M&A and ensure all key stakeholders are committed to it
• The majority of M&A activity in the NFP are likely to be driven by Mergers or Amalgamations (as opposed to acquisitions) and as such, should be considered in this context (shared values and common language);
• Don’t underestimate the importance of the motives for mergers or amalgamations in the NFP sector, acknowledging that they differ from the Corporate Sector.
• Agree on the purpose and mission of the new organization and communicate this often and broadly;
Critical Success Factors for Amalgamation
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• The external Advisory Team needs to have
experience and understand the context and
environment of the NFP Sector. Furthermore,
they would preferably have some experience in
having worked with NFP Boards.
• Engage regulators and funders early.
• Do not underestimate the effort involved
in the integration phase and resource it
adequately.
• Establish an Integration Management Office to
oversee the integration and change process.
• Deliver on low hanging fruit.
Critical Success Factors for Amalgamation
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• What went well?
• What could we
do better?
• What would we
tell the next
Amalgamation Team?
Lessons Learnt
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Thank you. Any questions?
Chris Karagiannis
General Manager Strategy, Infrastructure & Housing
Email: [email protected]
Phone: +61 3 8823 7900
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Don Tidbury
Chief Executive Officer
Email: [email protected]
Phone: +61 3 5428 0300